Rupee gains 16 paise to 95.73 against US dollar in early trade

The rupee gained 16 paise to 95.73 against the US dollar in early trade on Friday, supported by buying in domestic equities and easing crude oil prices. The dollar index edged lower, while FIIs remained net sellers on Thursday

Mumbai: The rupee rebounded from over two-month low levels, gaining 16 paise to 95.73 against the US dollar in early trade on Friday, buoyed by a buying trend in domestic equity markets and easing crude oil prices overseas.

Forex analysts said the retreat of crude prices below the USD 104-per-barrel level from a steep rise earlier this week eased pressure on the Indian currency, even as US bond yields fell from record highs after the US Federal Reserve hiked interest rates by 25 basis points.

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At the interbank foreign exchange market, the rupee opened at 95.75 and gained slightly to trade at 95.73 against the greenback in early deals, up 16 paise from its previous close.

The local unit ended 2 paise higher at 95.89 against the American currency on Thursday, after declining 150 paise, or nearly 1.5 per cent, in the preceding eight sessions from the closing level of 94.43 against the greenback recorded on September 4.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent lower at 99.97.

Brent crude, the global oil benchmark, was trading 0.93 per cent lower at USD 103.85 per barrel in futures trade.

In domestic equities, the Sensex rose 122.18 points, or 0.16 per cent, to 74,436.77, while the Nifty gained 23.55 points, or 0.10 per cent, to 23,294.15.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,208.76 crore on a net basis on Thursday, according to exchange data.